Goldman Sachs launches intern-to-buy-side track to stop top talent from jumping to private equity firms

Goldman Sachs launches intern-to-buy-side track to stop top talent from jumping to private equity firms

Goldman Sachs has implemented a new initiative to retain top talent from jumping to private equity firms. The investment bank is launching an intern-to-buy-side track, which aims to provide a clear path for promising interns to transition into buy-side roles within the firm. This move comes amidst a broader industry trend of talent poaching, particularly by private-equity firms, which have been targeting junior bankers early in their careers.

The new program is designed to address the growing concern among investment banks about the early recruitment of junior analysts by private-equity firms. According to a report by Fortune, Goldman Sachs is the latest major investment bank to implement measures to prevent this trend, including regular certifications from junior bankers that they have not accepted job offers from private-equity firms [1].

The intern-to-buy-side track is part of a broader effort by Goldman Sachs to retain young talent and ensure that they are fully integrated into the firm's operations before considering other opportunities. The program offers interns a structured path to transition into buy-side roles, providing them with the necessary training and experience to make informed decisions about their careers.

Paul Webster, managing partner at Page Executive North America, a search and recruitment firm, has expressed concerns about the effectiveness of such measures. He noted that while loyalty oaths and non-compete agreements can have the opposite effect, creating a backlash among candidates [1]. However, Goldman Sachs hopes that by providing a clear career path and addressing the concerns of young workers, they can reduce the allure of private-equity firms.

The initiative is part of a larger shift in the financial industry, with more firms adopting "real-time recruiting" strategies to engage with prospective workers near the end of their initial contracts. This change is driven by a desire to reduce the early recruitment of young talent by private-equity firms and to create a more stable and productive workforce [1].

While the effectiveness of the intern-to-buy-side track remains to be seen, it is clear that Goldman Sachs is taking proactive steps to address the talent poaching issue. By providing a clear career path and addressing the concerns of young workers, the firm hopes to retain top talent and ensure the long-term success of its operations.

References:
[1] https://www.aol.com/finance/loyalty-oaths-prevent-junior-bankers-090300012.html